<p>To pay an overseas supplier, you need to:<br></p><ul><li>Decide on a payment currency</li><li>Select a payment method: There are various payment methods and payment service providers available, including bank transfers, credit card payments, PayPal and TransferWise. When you're choosing a payment method or provider, you need to think about the currencies available, fees, exchange rates, speed of global payments and payment reconciliation capabilities. </li><li>Obtain the information you need to process the payment: You may need to obtain different types of information from your supplier, depending on the payment method you agree on. These may include their full name and address, bank account number, routing number and branch number and address.</li></ul>
Small Business Accountants
How should I pay overseas supplier?
UK businesses pay overseas suppliers by international bank transfer using SWIFT codes and IBANs, or through low-cost foreign exchange providers such as Wise, Revolut Business, or OFX that often beat high-street bank FX margins. For VAT-registered buyers, the reverse charge usually applies on services bought from overseas, requiring output and input VAT entries on the same return. FX gains and losses need to be recorded in the bookkeeping at the payment date.
